Section 50: Records, returns and notices

Overview

Section 50 of the Code on Wages, 2019 deals with the essential administrative requirements for ensuring fair wage practices. It focuses on transparency and accountability by mandating employers to keep detailed records of wage-related information, regularly report this information to the government, and make key details visible to employees.

Scope and Coverage

• Which employees and establishments are covered: This section applies to all establishments and all employees covered under the Code on Wages, 2019. This includes workers employed directly, as well as those engaged through contractors.
• Any thresholds or exclusions: There are currently no specific thresholds or exclusions regarding the applicability of this section. All employers covered by the Code must comply.

Key Obligations and Rights

• Main duties of employers: Employers are required to:
  • Maintain registers and records as prescribed by the appropriate Government (Central or State). These records will likely include details of wages paid, deductions made, hours worked, and other relevant information.
  • Submit returns to the Government at regular intervals, providing a summary of wage-related data.
  • Display notices in a prominent location within the workplace. These notices must contain specific details about wages, payment dates, and other prescribed particulars, making the information easily accessible to all employees.
• Important rights or protections for employees: Employees have the right to:
  • Access information about their wages and deductions through the displayed notices.
  • Expect that their employer is accurately maintaining records of their employment and wages.
  • Benefit from increased transparency and accountability in wage payment practices.

Compliance and Penalties

Failure to comply with Section 50 can lead to penalties. Government inspectors have the authority to inspect employer records to ensure compliance. If violations are found, employers may face fines and other legal consequences as prescribed under the Code. Repeated or serious violations could result in more severe penalties.

Practical Examples

• Example 1 from a typical workplace: A garment factory owner must maintain a register showing the daily wages paid to each worker, any deductions made for things like provident fund or ESI, and the total hours worked. They must also display a notice board showing the minimum wage rates, payment dates, and contact information for grievance redressal.
• Example 2 for a borderline scenario: A small retail shop owner employing 5 workers must still maintain the required registers and submit returns, even though the establishment is small. They also need to display the prescribed notice, ensuring all employees are aware of their wage rights.